hello experts,
Suppose an employee has an income of 5 lacs in a company ,deduction under 80c is 1,50,000 thus taxable income is 3,50,000. employer has deducted tds accordingly.
Employee has another source of income of 5,00,000 which was not disclosed to the employer and therefore no tds has been deducted and deposited by employer on this income.
will this less deduction have any effect on the employer's liability?
Dear Anita.
In Employer point of view:- At the time of recruitment of an employee employer obtains a declaration from employee his all source of income for tds purpose. If employee don't provide true information or concealled any source of income than employers is not liable for any legal panalties.
In Employee point of view:- If he not disclosed his all income for tds deduction than he will liable for pay advance tax and interest thereon if his tax payable is more than 10000.
is it mandatory for the employer to obtain such declaration?
Dear Frnd
Not Statutorily Mandatory but protect own interest and avoid any unneccessory irregularaties.
like in scruitny of books of account department will ask to employer rather employee.
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CAclubindia
